The cost of advertising on Instagram varies based on factors like bids, how relevant your ad is, the time of year, and your industry. On average, businesses spend between $0.01 and $0.25 per click, $0.01 to $4.00 for every 1,000 impressions, and $0.03 to $0.08 per engagement. If you want to know more about Instagram ad costs and tips to reduce them, check out this guide!
Instagram ad costs vs. other networks
Discover how Instagram ad costs stack up against other platforms:
| Ad network | Average CPC | Average CPM |
| $0.01 – $0.25 | $0.01 – $4.00 | |
| $0.26 – $0.50 | $1.01 – $3.00 | |
| Google Ads | $0.11 – $0.50 | $0.51 – $1.00 |
| YouTube | $0.11 – $0.40 | $9.68 |
| X | $0.26 – $0.50 | $6.50 |
| $2.00 – $3.00 | $5.01 – $8.00 | |
| Microsoft Advertising | $1.54 | $2.00 to $6.00 |
| $0.01 – $0.10 | $0.01 – $1.50 | |
| TikTok | $1.00 | $10.00 |
What affects Instagram ad costs?
Several factors influence how much you pay for Instagram ads:
- Budget: Your budget sets how much you’re willing to spend on a campaign or within a specific time. Instagram will aim to use your entire budget, so choose it wisely.
- Bid Strategy: Instagram offers different bidding options, like focusing on spending or achieving a specific goal (like a return on ad spend). Your choice can impact costs and results.
- Ad Objective: Your goal, whether it’s brand awareness, engagement, or leads, plays a big role in costs. Instagram tailors your ads to users most likely to take the desired action.
- Audience: Targeting the right audience helps control costs. Instagram lets you target users based on demographics or create custom audiences.
- Ad Quality and Relevance: High-quality, relevant ads cost less. Improve your targeting, ad copy, visuals, and offers to boost quality.
- Ad Creative: The type of ad (image, video, etc.) affects where it appears and its quality score. Make sure your creatives are clear and engaging.
- Season: Costs can rise during busy times, like holidays, when more advertisers compete for ad space.
Are Instagram ads worth it?
Absolutely. In fact, 76% of marketers are happy with the results and return on investment (ROI) from their Instagram ad campaigns. This proves that Instagram ads can be a powerful and effective tool for businesses.
Here are some reasons why Instagram ads are worth the cost:
- Higher Click-Through Rates (CTRs):
Instagram often performs better than other platforms when it comes to CTRs. For example, a study by Fortune found that Instagram ads have a CTR 2.5 times higher than ads on other social media networks. However, your CTR will depend on your target audience and the quality of your ads.
- Advanced Targeting Options
Instagram, like Facebook, offers advanced targeting features for businesses.
These tools allow you to refine your audience based on factors like location, interests, and more, helping you get better results from your ads. For example, instead of targeting all sports enthusiasts, you can focus specifically on people interested in volleyball. This precision helps improve ad performance and ROI.
- Higher Order Values
Another reason Instagram ads are worth the cost is the results they deliver.
A recent study by Shopify found that the average order value from Instagram users is $65. In comparison, Facebook, while generating a lot of sales, has an average order value of $55—$10 less than Instagram.
It’s also worth noting that Facebook ads generally cost more than Instagram ads, making Instagram an even more appealing option for businesses.
- Higher Engagement Rates
Research by Forrester shows that Instagram has much higher engagement rates compared to other platforms. In fact, Instagram’s engagement rates are ten times higher than Facebook’s.
When users are this engaged on a platform, it creates great opportunities for businesses. By creating ads that reach the right audience, you can encourage them to click on your ad, follow your page, or purchase your product. This makes Instagram a powerful tool for driving results.
- Higher Conversion Rates
In addition to higher order values, Instagram ads also deliver better conversion rates compared to other platforms. The average conversion rate for Instagram ads is 1.08%, while Pinterest ads average 0.54% and Twitter ads 0.77%.
While Instagram ads are worth the investment, it’s important to remember that success depends on creating a strong ad campaign. Continuously improving and optimizing your strategy is key to achieving the results you want from Instagram ads.
How much should I spend on Instagram ads?
On average, businesses spend between 11% and 20% of their total ad budget on Instagram ads. The exact amount you should spend depends on your company’s specific goals, needs, and the results you’re getting from your Instagram ad campaigns. It’s important to adjust your budget based on what works best for your business.
How can I reduce my Instagram ad costs?
When advertising on social media, it’s important to find ways to lower costs while maximizing results. Here are some tips to help you reduce your Instagram ad expenses and get the most out of your budget:
- Improve Ad Relevance: Create ads that resonate with your target audience to boost engagement and lower costs.
- Refine Targeting: Use Instagram’s advanced targeting options to reach the right users and avoid wasting ad spend.
- Test Ad Creatives: Experiment with different images, videos, and captions to find what works best.
- Optimize Bidding Strategy: Choose the right bidding option for your goals, like automatic bidding for cost efficiency.
- Monitor Performance: Regularly review your ad performance and make adjustments to improve results.
- Focus on Quality: High-quality, engaging content can improve your ad’s relevance score and reduce costs.
In conclusion, advertising on Instagram in 2025 remains a cost-effective and impactful strategy for businesses, with costs varying based on factors such as bidding strategies, ad relevance, audience targeting, and seasonal demand. On average, businesses can expect to spend between $0.01 and $0.25 per click, $0.01 to to $4.00 per 1,000 impressions, and $0.03 to $0.08 per engagement. Compared to other platforms like Facebook, Google Ads, and LinkedIn, Instagram offers competitive pricing and higher engagement rates, making it a valuable channel for marketers.
